CollPlant, a regenerative and aesthetic medicine company, released positive financial results for the full year ended December 31, 2020. The company also issued forward guidance for 2021. The update follows on the Yehiel Tal’s February, 2021, letter to shareholders. The company’s financial results revealed fewer losses and higher revenues, which is on all fours with AM’s resurgence in 2020.
“2020 and the beginning of 2021 were transformational for CollPlant as we continued to grow and strengthen our position in the global market with our regenerative rhCollagen-based technologies in both 3D printing and medical aesthetics,” said Yehiel Tal.
“We entered into a new development and commercialization agreement with Allergan Aesthetics, an AbbVie company, which came with substantial upfront and future milestone payments. Through this high-value collaboration, we are creating a paradigm shift in the medical aesthetics field by providing next-generation regenerative products with long lasting results.”
“Our rhCollagen and BioInks are used today in the development of a broad range of 3D bioprinting applications conducted at CollPlant. We are particularly excited about the potential of our program for 3D bioprinted breast implants, which harness the potential to transform the field of breast reconstruction and augmentation.”
“We recently established a platform for collaboration with 3D Systems in the field of 3D bioprinting to jointly address the need for a comprehensive solution to produce tissues and scaffolds for regenerative medicine applications,” Mr. Tal concluded.
Full Year 2020 and Recent Highlights
rhCollagen Platform Technology Highlights
The company entered strategic agreement potentially worth $103 million plus royalties and transfer pricing with Allergan Aesthetics, an AbbVie company, for rhCollagen in the use of dermal and soft tissue filler products. Received $14 million upfront.
The company completed development of proprietary rhCollagen-based regenerative breast implants designed to gradually degrade and be replaced by newly grown natural breast tissue, and conducting preclinical study. It further developed photocurable dermal/soft tissue filler formulation based on rhCollagen for the medical aesthetics market.
Entered product manufacturing and supply agreement with STEMCELL Technologies, Canada’s largest privately owned biotechnology company, for rhCollagen to be included in cell culture kits sold to scientists worldwide working in the stem cell, immunology, cancer, regenerative medicine, and cellular therapy research fields.
CollPlant joined forces with 3D Systems to facilitate the development of 3D bioprinted tissues and scaffolds for regenerative medicine applications.
Year ended December 31, 2020 Financial Results on US GAAP basis (“GAAP”)
Revenues for the year ended December 31, 2020 increased by 165% to $6.1 million, compared to $2.3 million in the year ended December 31, 2019. Revenue in 2020 included $3.6 million revenue from the kidney option exercised under the licensing agreement with United Therapeutics Corporation. Excluding the licensing option payment, revenue from sale of BioInk and goods and services increased in 2020 by $200,000, in comparison with 2019.
Total operating costs and expenses for the year ended December 31, 2020 increased by 7% to $8.7 million, compared to $8.1 million in the year ended December 31, 2019. Operating loss for the year 2020 was $5.6 million, a decrease of 26% compared to an operating loss of $7.6 million in 2019. The decrease is mainly derived from revenues from licensing in the amount of $3.6 million received in 2020 offset by an increase in operating costs and expenses including $600,000 in share-based compensation expenses and $360,000 in salaries and insurance policy costs.
Financial expense, net for the year 2020 was $175,000 compared to financial expense, net of $3.5 million in the year 2019. The decrease of approximately $3.3 million is mainly due to a decrease in non-cash re-evaluation expenses of $3.3 million of CollPlant’s warrants and the anti-dilution derivatives.
Comprehensive loss for the year ended December 31, 2020 was $5.8 million, or $0.84 per share, compared to a comprehensive loss of $11.2 million, or $2.23 per share, for the year ended December 31, 2019. The decrease is mainly due to (1) $3.8 million increase in revenues and non-cash re-evaluation expenses of $3.3 million, of CollPlant’s warrants and the anti-dilution derivatives offset by a $700,000 increase in operating expenses .
Cash used in operating activities during the year ended December 31, 2020, was $4.4 million compared to $5.7 million in the year ended December 31, 2019. The decrease is mainly attributed to a decrease in net loss including the $3.8 million increase in revenues.
Cash used in investing activities during the year ended December 31, 2020, was $519,000 compared to $1.5 million in the year ended December 31, 2019. The decrease is mainly attributed to the establishment in 2019 of CollPlant’s new R&D center and headquarters and investment in its production facility.
Cash provided by financing activities during the year 2020, was $4.5 million compared to $5.4 million in the year ended December 31, 2019. In both years, 2020 and 2019, the Company raised funds from investors via private placements in return for issuance of its securities.
Year ended 2020 Financial Results on Non-GAAP Basis
On a non-GAAP basis, the company’s operating costs and expenses for the year 2020 increased by 6% from $6.8 million, compared to $6.6 million for the year 2019. The comprehensive loss for the year ended December 31, 2020 was $3.9 million, or $0.57 per share, compared to $6.4 million, or $1.29 per share, for the year ended December 31, 2019. Non-GAAP measures exclude certain non-cash expenses.